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Singapore Air Show: Chinese officials tout investment in the afterglow of C919

The Elite Times TeamBy No Comments3 Mins Read

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China’s local government took to the stage at the Singapore Air Show on Thursday to attract foreign investment to the country’s booming aerospace industry. virgin figure Domestic C919 passenger plane.

Officials from Langfang city in Hebei province, near the capital Beijing, and Taicang city in eastern Jiangsu province gave presentations at the international aviation event, touting the benefits of China’s aviation sector to attendees.

Their call for further investment was prompted by the narrow-body C919 airliner manufactured by China Commercial Aircraft Corporation (Comac). First flight outside China for the show.

[We will] Making Taicang one of the best destinations for aerospace investment and development

Qian Lili, Taicang City Investment Promotion Bureau

Qian Lili, deputy director of the Taicang City Investment Promotion Bureau, said the global aviation industry is undergoing a “transformation period” as a result of the coronavirus pandemic, geopolitical tensions and increasing demand for sustainable development. He said there was. The city is home to several C919 suppliers.

“Taicang focuses on high-end, intelligent and green development” [of aviation]” Qian said at the China-Singapore Bilateral Aviation Forum, adding that the government is providing various benefits to encourage activity, such as rent rebates for talented individuals in the workforce.

Aircraft engines, critical components, materials and aircraft systems are all areas of interest for the city, Qian added.

“Taicang will do its best to optimize the business environment,” Qian said. “and [we will] Making Taicang one of the best destinations for aerospace investment and development. ”

Ding Ling, deputy mayor of Langfang city and head of the Beijing Daxing International Airport Economic Zone Management Committee, announced that the city will receive 20 million yuan as an “industrial guidance fund” to provide funds to companies developing new businesses. (2.8 million USD) is being prepared. Help the region achieve the goal of building a 100 million yuan aerospace industry.

As China changes direction, independence In an effort to reduce imports of advanced technology, many local governments are spending heavily on infrastructure and providing funds to help improve national manufacturing capacity. Aerospace, an investment-heavy sector that has traditionally relied on globalized supply chains, is a key arena for this policy.

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Inside view of Chinese domestic commercial airliners ARJ21 and C919

Inside view of Chinese domestic commercial airliners ARJ21 and C919

The C919 was designed to compete with Boeing’s 737 and Airbus’ A320. It took 15 years to build And they benefited from huge government funding. The Center for Strategic and International Studies, a US-based think tank, estimated that Comac could have received up to US$72.1 billion in state-related aid in 2020.
China’s widespread use of industrial subsidies is controversial among trading partners such as the United States and Europe, who argue that the practice is unfair to foreign companies and creates market distortions. There is. The EU has launched two separate anti-subsidy investigations. One is a thorough investigation. import of electric cars And the other one is train contract In Bulgaria.

As China rushes to expand its cutting-edge technology supply chain to prevent a deterioration of relations with the United States, hurdles are quickly emerging.

Washington has imposed export restrictions on many areas of aerospace applications and restricted technology-related activities. it claims Both military and commercial applications are possible.

The restrictions further heightened foreign investors’ concerns about China’s staying power as a manufacturing hub.

Mabel Kwan, managing director of Alton Aviation Consultancy, said nearshoring strategies by aviation multinationals are on the rise due to pandemic-era supply chain disruptions and changing geopolitical conditions. However, he added that such an approach would likely result in higher costs. In the short term.

“We definitely expect to see a high-cost environment because of diminished skills and duplication of resources,” Kwan said.

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